Paycom Software (NYSE:PAYC) Stock Price Expected to Rise, KeyCorp Analyst Says

Key Points

• KeyCorp raised Paycom Software’s price target from $270 to $280 and maintained an “overweight” rating, implying 23.72% potential upside from the stock’s $226.32 price.
• Analyst sentiment remains mixed: Paycom has an average “Hold” rating and a consensus price target of $215, despite KeyCorp’s bullish outlook.
• Paycom exceeded quarterly expectations, reporting $2.78 in EPS versus $2.38 expected and $531.2 million in revenue, up 9.8% year over year. Institutional investors own 87.77% of the company.

Paycom Software (NYSE:PAYC - Get Free Report) had its price target hoisted by equities research analysts at KeyCorp from $270.00 to $280.00 in a note issued to investors on Monday, Benzinga reports. The brokerage presently has an "overweight" rating on the software maker's stock. KeyCorp's price objective indicates a potential upside of 23.72% from the company's current price.

A number of other equities research analysts have also recently issued reports on the company. Wall Street Zen cut Paycom Software from a "buy" rating to a "hold" rating in a research note on Sunday, September 6th. Barclays raised their target price on shares of Paycom Software from $154.00 to $210.00 and gave the company an "equal weight" rating in a research note on Thursday, August 6th. Cantor Fitzgerald boosted their target price on shares of Paycom Software from $135.00 to $195.00 and gave the stock a "neutral" rating in a report on Thursday, August 6th. Stifel Nicolaus upped their price target on shares of Paycom Software from $120.00 to $200.00 and gave the stock a "hold" rating in a research report on Thursday, August 6th. Finally, Citigroup lifted their price objective on shares of Paycom Software from $136.00 to $194.00 and gave the company a "neutral" rating in a research report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $215.00.

Paycom Software Trading Up 0.0%

NYSE PAYC opened at $226.32 on Monday. The stock has a market capitalization of $10.20 billion, a price-to-earnings ratio of 24.05, a PEG ratio of 1.26 and a beta of 0.78. The stock's 50 day moving average price is $199.65 and its two-hundred day moving average price is $154.70. The company has a debt-to-equity ratio of 1.57, a quick ratio of 1.07 and a current ratio of 1.07. Paycom Software has a 52 week low of $104.90 and a 52 week high of $244.98.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.38 by $0.40. The firm had revenue of $531.20 million for the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The company's revenue was up 9.8% compared to the same quarter last year. During the same period in the previous year, the business earned $2.06 EPS. As a group, analysts anticipate that Paycom Software will post 10.65 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Shane Hadlock sold 241 shares of the company's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $240.07, for a total value of $57,856.87. Following the transaction, the insider owned 69,911 shares of the company's stock, valued at approximately $16,783,533.77. This represents a 0.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 13.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Paycom Software

A number of institutional investors have recently modified their holdings of the business. Tidal Investments LLC raised its stake in Paycom Software by 187.6% in the 2nd quarter. Tidal Investments LLC now owns 14,543 shares of the software maker's stock worth $1,828,000 after purchasing an additional 9,487 shares in the last quarter. Archford Capital Strategies LLC grew its position in Paycom Software by 1.1% during the second quarter. Archford Capital Strategies LLC now owns 4,684 shares of the software maker's stock worth $589,000 after buying an additional 49 shares in the last quarter. WINTON GROUP Ltd raised its holdings in Paycom Software by 311.7% in the 2nd quarter. WINTON GROUP Ltd now owns 46,197 shares of the software maker's stock valued at $5,806,000 after acquiring an additional 34,976 shares in the last quarter. Engineers Gate Manager LP lifted its position in shares of Paycom Software by 52.4% during the 2nd quarter. Engineers Gate Manager LP now owns 80,419 shares of the software maker's stock valued at $10,107,000 after acquiring an additional 27,644 shares during the period. Finally, Integrated Wealth Concepts LLC bought a new position in shares of Paycom Software in the second quarter worth $244,000. Institutional investors own 87.77% of the company's stock.

About Paycom Software

Paycom Software, Inc is a provider of cloud-based payroll and human capital management (HCM) software for businesses. Its platform is designed to help organizations manage employee data and payroll processes through a unified system, serving small, midsize and larger employers primarily in the United States.

The company's products and services include payroll processing, tax management, time and labor management, talent acquisition, onboarding, employee learning, performance management, compensation planning, benefits administration, expense management and compliance tools.

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